Through 11 different securities buying/lending programs—another announced today—the Federal Reserve is now fully supporting a perfect riot of speculation in which Wall Street banks need hardly lend to make large fees and profits, and “every child from 10 to 92” is spending the day playing in the stocks of bankrupt companies. Meanwhile, a new study by economists at MIT, Harvard, Northwestern, and Univ. of Chicago concluded that an unprecedented shock demand recession has removed nearly $1 trillion from GDP in the incomplete second quarter alone, and $6.8 trillion from the wealth of households and
businesses, already in the ballpark of the $10 trillion lost in the 2007-08 global financial crash. Oxford Economics forecast June 12 that roughly one-third, 9 million, of the “temporarily laid off” Americans, will actually lose their jobs permanently. The Washington Post quoted the ubiquitous Mark Zandi of Moody’s Analytics that the deep recession will “double-dip” later this year unless at least another $1 trillion “stimulus” is issued. What this should be, Zandi does not say.
Recall when, at the August 2019 Jackson Hole, Wyoming, international bankers’ meeting, BlackRock LLP and its central bank allies presented a “regime change” scenario in which central banks were supposed to take over fiscal control from government, print unlimited amounts of new currency, and solve precisely the last decade’s problem of lack of demand! Now the Fed’s asset book is $7.2 trillion, reflecting $3 trillion in money printing in three months, and there is a “shock” loss of demand.
New infrastructure projects on a great scale create such demand. The LaRouche Political Action Committee’s proposed creation of 6-7 million new productive jobs in the United States in two years — 50 million in a generation — by building new health care, power, water, transportation infrastructure all over the world, along with training for greatly expanded NASA space exploration missions, is what those 9 million or more laid off Americans need. [PBG]
